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8-K - FORM 8-K - ENPRO INDUSTRIES, INC | g27143e8vk.htm |
Exhibit 99.1
News
Release
EnPro Industries | ||||
Investor Contact:
|
Don Washington | 5605 Carnegie Boulevard | ||
Director, Investor Relations and | Charlotte, North Carolina 28209-4674 | |||
Corporate Communications | Phone: 704-731-1500 | |||
Fax: 704-731-1511 | ||||
Phone:
|
704-731-1527 | www.enproindustries.com | ||
Email:
|
don.washington@enproindustries.com |
EnPro Industries Reports Strong First Quarter 2011 Results
| Consolidated income from continuing operations was $15.2 million compared to $5.6 million in the first quarter of 2010 | ||
| Consolidated income before selected items was $19.7 million in the first quarter of 2011; GST earned an additional $6.9 million before selected items in the quarter | ||
| Consolidated sales increased 18% from the first quarter of 2010, when GST was included in EnPros consolidated results | ||
| Excluding GSTs results for the first quarter of 2010, third-party sales increased 44%, with acquisitions contributing growth of 15% | ||
| Consolidated earnings before interest, income taxes, depreciation, amortization and asbestos-related expenses and other selected items (EBITDAA) increased to $42.6 million, or 15.8% of sales, in the first quarter of 2011; GST generated EBITDAA of $11.6 million in the first quarter of 2011 |
CHARLOTTE, N.C., May 6, 2011 EnPro Industries (NYSE: NPO) today reported consolidated net
income of $15.2 million, or $0.71 a share, for the first quarter of 2011. These results reflect the
deconsolidation of Garlock Sealing Technologies LLC (GST) and its subsidiaries, effective June 5,
2010. (See the note on deconsolidation at the end of this press release.)
In the first quarter of 2010, the company reported income from continuing operations of $5.6
million, or $0.27 a share. Net income of $99.0 million, or $4.83 a share, in the first quarter of
2010 included income from discontinued operations of $93.4 million, or $4.56 a share. Income from
discontinued operations in the 2010 quarter primarily reflected an after-tax gain on the sale of
Quincy Compressor, which closed in the first quarter of 2010. Earnings per share are expressed on a
diluted basis.
Before selected items, EnPros consolidated net income in the first quarter of 2011 was $19.7
million. In the first quarter of 2010, income before selected items was $15.0 million, which
included of $3.9 million from GST. A table listing these selected items and their effect on EnPros
consolidated earnings in both periods is included with this press release.
Consolidated sales in the first quarter of 2011 were $269.6 million, an 18% improvement over the
first quarter of 2010, when sales were $228.2 million and included $44.4 million of third-party
sales from GST. Excluding GSTs sales from the first quarter of 2010, third-party sales increased
44%, with acquisitions accounting for growth of about 15%.
1
Consolidated earnings before interest, income taxes, depreciation, amortization, asbestos-related
expenses and other selected items (EBITDAA) were $42.6 million, or 15.8% of sales, in the first
quarter of 2011. In the first quarter of 2010, EBITDAA was $37.0 million, or 16.2% of sales,
including a contribution of $7.8 million from GST. Excluding the results of GST, EBITDAA margins
were 15.9% in the first quarter of 2010.
Our first quarter results are encouraging, said Steve Macadam, president and chief executive
officer. Our strong sales growth was driven by higher demand for most of our products, the
contribution of acquisitions and near-record sales at our engine business. Profit margins in our
Sealing Products and Engineered Products segments improved as volumes increased and we benefited
from our continuous improvement initiatives. Although higher engine shipments caused margins in our
Engine Products and Services segment to decline in comparison with the record level of a year ago,
the segments margins remain quite attractive and within our expectations.
Sealing Products Segment
($ Millions) | ||||||||||||
Quarter Ended | 3/31/2011 | 3/31/2010 | Change | |||||||||
Sales |
$ | 115.7 | $ | 113.8 | 2 | % | ||||||
EBITDA |
$ | 24.3 | $ | 23.0 | 6 | % | ||||||
EBITDA Margin |
21.0 | % | 20.2 | % | ||||||||
Segment Profit |
$ | 19.6 | $ | 17.8 | 10 | % | ||||||
Segment Margin |
16.9 | % | 15.6 | % |
Sales in the Sealing Products segment improved slightly over the first quarter of 2010, despite the
deconsolidation of GST, which had $44.4 million in third-party sales in the first quarter of 2010.
Excluding GSTs sales from the first quarter of 2010, sales in the segment grew by 52% and
reflected increased aftermarket demand at the consolidated Garlock companies from power generation,
oil and gas, and aerospace markets; increased activity in Stemcos heavy-duty trucking markets; and
the benefit of acquisitions completed since the first quarter of 2010. Businesses acquired over the
past 12 months contributed about $19 million to the segments first quarter sales.
Profits in the Sealing Products segment improved by 10% to $19.6 million over the first quarter of
2010, when GST contributed $6.4 million to segment profits of $17.8 million. Excluding GST from the
first quarter of 2010, segment profits improved by 62%, reflecting higher volumes at the
consolidated Garlock companies and at Stemco, and a strong contribution from Rome Tool & Die, which
was acquired in early January 2011 as part of Stemcos expansion into braking products.
Engineered Products Segment
($ Millions) | ||||||||||||
Quarter Ended | 3/31/11 | 3/31/10 | Change | |||||||||
Sales |
$ | 94.3 | $ | 75.1 | 26 | % | ||||||
EBITDA |
$ | 14.9 | $ | 11.0 | 35 | % | ||||||
EBITDA Margin |
15.8 | % | 14.6 | % | ||||||||
Segment Profit |
$ | 10.1 | $ | 6.4 | 58 | % | ||||||
Segment Margin |
10.7 | % | 8.5 | % |
Sales in the Engineered Products segment improved by 26% as increases in industrial and automotive
demand produced higher volumes at GGB Bearing Technology and as Compressor Products International
(CPI) benefited from acquisitions, which contributed 10 percentage points of the segments sales
growth in the first quarter. CPI continues to benefit from strong refining and petrochemical
markets, and from acquisitions. However, low prices and high storage levels continue to limit
activity in its natural gas markets and put pressure on volumes and margins at CPI.
Overall, the segments margins rose to 10.7%, the highest level the segment has reached since its
markets began to soften in the third quarter of 2008, and profits improved by 58%. Margins and
profits benefited primarily from
2
higher volumes and increased productivity at GGB, which has seen a substantial recovery in its
markets. At CPI, profits were flat with a year ago, reflecting the low level of activity in its
natural gas markets and limited contributions both from recently opened service centers and
acquisitions that have not yet been fully integrated.
Engine Products and Services Segment
($ Millions) | ||||||||||||
Quarter Ended | 3/31/11 | 3/31/10 | Change | |||||||||
Sales |
$ | 60.2 | $ | 39.6 | 52 | % | ||||||
EBITDA |
$ | 12.2 | $ | 11.0 | 11 | % | ||||||
EBITDA Margin |
20.3 | % | 27.8 | % | ||||||||
Segment Profit |
$ | 11.2 | $ | 10.0 | 12 | % | ||||||
Segment Margin |
18.6 | % | 25.3 | % |
Sales in the Engine Products and Services segment increased sharply as the number and value of
engine shipments increased. The year-over-year sales growth at Fairbanks Morse Engine is
attributable to six engine shipments in the first quarter of 2011 compared to two in the first
quarter of 2010. Although aftermarket sales were lower than a year ago, the comparison is to a
quarter in 2010 in which there was a record level of aftermarket demand. Despite increased engine
sales, which are less profitable than aftermarket sales, the segments margins remained very strong
at 18.6%.
Garlock Sealing Technologies
($ Millions) | ||||||||||||
Quarter Ended | 3/31/11 | 3/31/10 | Change | |||||||||
Third Party Sales |
$ | 52.4 | $ | 44.4 | 18 | % | ||||||
EBITDAA |
$ | 11.6 | $ | 7.8 | 49 | % | ||||||
EBITDAA Margin |
22.1 | % | 17.6 | % | ||||||||
Operating Profit |
$ | 10.5 | $ | 6.4 | 64 | % | ||||||
Margin |
20.0 | % | 14.4 | % | ||||||||
Adjusted net income |
$ | 6.9 | $ | 3.9 | 77 | % |
The deconsolidated operations of Garlock Sealing Technologies and its subsidiaries reported an 18%
increase in third-party sales compared to the first quarter of 2010, when they were included in
EnPros consolidated results. The increase in sales reflects higher demand principally from the
steel industry and a strong maintenance and turnaround season in the U.S. petrochemical industry.
The profitability of these operations improved as volumes increased and the operations benefited
from initiatives which have helped them to improve pricing. Measures of GSTs profitability,
including adjusted net income, do not reflect legal expenses of about $4.3 million incurred in the
first quarter of 2011 in connection with the asbestos claims resolution process and, for the first
quarter of 2010, asbestos-related expenses.
Cash Flows
EnPros cash balance stood at $45.9 million at March 31, 2011, a reduction of approximately $173
million from December 31, 2010, when the cash balance was $219.2 million. The balance was reduced
primarily by an investment of $152 million in three acquisitions that were completed in the first
quarter of 2011. In addition, operating activities used $12.8 million in cash as volumes increased
and working capital needs grew. In the first quarter of 2010, operating activities used cash of
$3.8 million.
Outlook
Macadam noted that the company expects to see steady levels of demand throughout the year from the
markets served by its Sealing Products and Engineered Products segments. These segments will also
continue to benefit from already completed acquisitions, which the company expects to contribute at
least $100 million to 2011 sales. The companys 2011 outlook for the Engine Products and Services
segment is unchanged, with sales about equal to 2010 and all remaining engine shipments currently
scheduled for the third quarter. As a result, that segments sales in the second quarter should be
substantially less than in the first quarter.
3
Our first quarter results are evidence that we have made significant progress towards our
strategic goals and that we are benefiting from our ongoing operational efficiency and continuous
improvement initiatives. We believe our progress in these areas positions us well to benefit not
only from improvements in our markets, but also from the successful integration of our acquisitions
throughout 2011, Macadam concluded.
Conference Call and Webcast Information
EnPro will hold a conference call today, May 6, at 10:00 a.m. Eastern Time to discuss first quarter
2011 results. Investors who wish to participate in the call should dial 1-800-851-4704
approximately 10 minutes before the call begins and provide conference id number 60256171. A live
audio webcast of the call and accompanying slide presentation will be accessible from the companys
website, http://www.enproindustries.com. To access the presentation, log on to the webcast by
clicking the link on the companys home page.
Non-GAAP Financial Information
This press release contains financial measures that have not been prepared in accordance with GAAP.
They include income before asbestos-related expenses and other selected items, EBITDAA, EBITDA and
related per share amounts. Tables showing the effect of these non-GAAP financial measures for the
first quarter 2011 and 2010 are attached to the release.
Forward-Looking Statements
Statements in this press release that express a belief, expectation or intention, as well as those
that are not historical fact, are forward-looking statements under the Private Securities
Litigation Reform Act of 1995. They involve a number of risks and uncertainties that may cause
actual events and results to differ materially from such forward-looking statements. These risks
and uncertainties include, but are not limited to: general economic conditions in the markets
served by our businesses, some of which are cyclical and experience periodic downturns; prices and
availability of raw materials; and the amount of any payments required to satisfy contingent
liabilities related to discontinued operations of our predecessors, including liabilities for
certain products, environmental matters, guaranteed debt payments, employee benefit obligations and
other matters. In addition, adverse developments could arise in regard to voluntary petitions filed
by certain of our subsidiaries in U.S. Bankruptcy Court to establish a trust that would resolve all
current and future asbestos claims. Our filings with the Securities and Exchange Commission,
including the Form 10-K for the year ended December 31, 2010, describe these and other risks and
uncertainties in more detail. We do not undertake to update any forward-looking statement made in
this press release to reflect any change in managements expectations or any change in the
assumptions or circumstances on which such statements are based.
Deconsolidation of Garlock Sealing Technologies LLC
Results for the first quarter of 2011 reflect the deconsolidation of Garlock Sealing Technologies
LLC (GST) and its subsidiaries, effective June 5, 2010, when GST filed a voluntary petition under
Chapter 11 of the U.S. Bankruptcy Code to begin a process in pursuit of an efficient and permanent
resolution to all current and future asbestos claims against it. Deconsolidation is required by
generally accepted accounting principles, which do not permit the restatement of results of prior
periods to reflect the deconsolidation. However, to aid in comparisons of year-over-year data, the
company has attached a schedule to this press release showing key operating measures for both EnPro
and GST on a pro forma basis. The schedule presents results for the first quarters of 2010 and 2011
as if the deconsolidation of GST had occurred on January 1, 2010.
About EnPro Industries
EnPro Industries, Inc. is a leader in sealing products, metal polymer and filament wound bearings,
components and service for reciprocating compressors, diesel and dual-fuel engines and other
engineered products for use in critical applications by industries worldwide. For more information
about EnPro, visit the companys website at http://www.enproindustries.com.
4
EnPro Industries, Inc.
Consolidated Statements of Operations (Unaudited)
Consolidated Statements of Operations (Unaudited)
For the Quarters Ended March 31, 2011 and 2010
(Stated in Millions of Dollars, Except Per Share Data)
(Stated in Millions of Dollars, Except Per Share Data)
2011 | 2010 | |||||||
Net sales |
$ | 269.6 | $ | 228.2 | ||||
Cost of sales |
175.6 | 139.6 | ||||||
Gross profit |
94.0 | 88.6 | ||||||
Operating expenses: |
||||||||
Selling, general and administrative expenses |
62.3 | 62.5 | ||||||
Asbestos-related expenses |
| 14.5 | ||||||
Other operating expense |
0.3 | 0.5 | ||||||
Total operating expenses |
62.6 | 77.5 | ||||||
Operating income |
31.4 | 11.1 | ||||||
Interest expense |
(9.9 | ) | (3.1 | ) | ||||
Interest income |
0.4 | 0.3 | ||||||
Income from continuing operations before income taxes |
21.9 | 8.3 | ||||||
Income tax expense |
(6.7 | ) | (2.7 | ) | ||||
Income from continuing operations |
15.2 | 5.6 | ||||||
Income from discontinued operations, net of taxes |
| 93.4 | ||||||
Net income |
$ | 15.2 | $ | 99.0 | ||||
Basic earnings per share: |
||||||||
Continuing operations |
$ | 0.74 | $ | 0.28 | ||||
Discontinued operations |
| 4.61 | ||||||
Net income per share |
$ | 0.74 | $ | 4.89 | ||||
Average common shares outstanding (millions) |
20.5 | 20.3 | ||||||
Diluted earnings per share: |
||||||||
Continuing operations |
$ | 0.71 | $ | 0.27 | ||||
Discontinued operations |
| 4.56 | ||||||
Net income per share |
$ | 0.71 | $ | 4.83 | ||||
Average common shares outstanding (millions) |
21.5 | 20.5 | ||||||
5
EnPro Industries, Inc.
Consolidated Statements of Cash Flows (Unaudited)
Consolidated Statements of Cash Flows (Unaudited)
For the Three Months Ended March 31, 2011 and 2010
(Stated in Millions of Dollars)
(Stated in Millions of Dollars)
2011 | 2010 | |||||||
Operating activities of continuing operations |
||||||||
Net income |
$ | 15.2 | $ | 99.0 | ||||
Adjustments to reconcile net income to net cash
used in operating activities of continuing operations: |
||||||||
Income from discontinued operations, net of taxes |
| (93.4 | ) | |||||
Depreciation |
5.8 | 6.6 | ||||||
Amortization |
4.8 | 4.3 | ||||||
Accretion of debt discount |
1.5 | 1.4 | ||||||
Deferred income taxes |
(0.4 | ) | 4.9 | |||||
Stock-based compensation |
0.4 | 1.2 | ||||||
Change in assets and liabilities, net of effects of acquisitions
and divestitures of businesses: |
||||||||
Asbestos liabilities, net of insurance receivables |
| 4.7 | ||||||
Accounts and notes receivable |
(25.8 | ) | (27.9 | ) | ||||
Inventories |
(7.5 | ) | 3.5 | |||||
Accounts payable |
4.4 | (0.1 | ) | |||||
Other current assets and liabilities |
(9.0 | ) | (10.7 | ) | ||||
Other non-current assets and liabilities |
(2.2 | ) | 2.7 | |||||
Net cash used in operating activities of continuing operations |
(12.8 | ) | (3.8 | ) | ||||
Investing activities of continuing operations |
||||||||
Purchases of property, plant and equipment |
(5.3 | ) | (3.4 | ) | ||||
Divestiture of business |
| 184.2 | ||||||
Acquisitions, net of cash acquired |
(152.2 | ) | 0.2 | |||||
Net cash provided by (used in) investing activities of continuing operations |
(157.5 | ) | 181.0 | |||||
Financing activities of continuing operations |
||||||||
Repayments of short-term borrowings |
(3.7 | ) | | |||||
Repayments of debt |
| (0.1 | ) | |||||
Debt issuance costs |
(0.7 | ) | | |||||
Proceeds from issuance of common stock |
| 0.3 | ||||||
Net cash provided by (used in) financing activities of continuing operations |
(4.4 | ) | 0.2 | |||||
Cash flows of discontinued operations |
||||||||
Operating cash flows |
| 1.4 | ||||||
Investing cash flows |
| (0.1 | ) | |||||
Net cash provided by discontinued operations |
| 1.3 | ||||||
Effect of exchange rate changes on cash and cash equivalents |
1.4 | (1.7 | ) | |||||
Net increase (decrease) in cash and cash equivalents |
(173.3 | ) | 177.0 | |||||
Cash and cash equivalents at beginning of period |
219.2 | 76.8 | ||||||
Cash and cash equivalents at end of period |
$ | 45.9 | $ | 253.8 | ||||
Supplemental disclosures of cash flow information: |
||||||||
Cash paid during the period for: |
||||||||
Interest |
$ | 15.0 | $ | | ||||
Income taxes |
$ | 7.0 | $ | (1.3 | ) | |||
Asbestos-related claims and expenses, net of insurance recoveries |
$ | | $ | 16.4 |
6
EnPro Industries, Inc.
Consolidated Balance Sheets (Unaudited)
Consolidated Balance Sheets (Unaudited)
As of March 31, 2011 and December 31, 2010
(Stated in Millions of Dollars)
(Stated in Millions of Dollars)
2011 | 2010 | |||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 45.9 | $ | 219.2 | ||||
Accounts and notes receivable |
189.8 | 142.1 | ||||||
Inventories |
103.4 | 77.0 | ||||||
Other current assets |
42.1 | 38.6 | ||||||
Total current assets |
381.2 | 476.9 | ||||||
Property, plant and equipment |
154.8 | 140.2 | ||||||
Goodwill |
165.8 | 112.1 | ||||||
Other intangible assets |
181.2 | 115.1 | ||||||
Investment in GST |
236.9 | 236.9 | ||||||
Deferred income taxes |
14.6 | 20.5 | ||||||
Other assets |
47.8 | 46.6 | ||||||
Total assets |
$ | 1,182.3 | $ | 1,148.3 | ||||
Current liabilities |
||||||||
Short-term borrowings from GST |
$ | 19.0 | $ | 22.1 | ||||
Notes payable to GST |
10.2 | | ||||||
Current maturities of long-term debt |
1.0 | | ||||||
Accounts payable |
70.0 | 57.5 | ||||||
Other accrued expenses |
86.0 | 100.3 | ||||||
Total current liabilities |
186.2 | 179.9 | ||||||
Long-term debt |
138.4 | 135.8 | ||||||
Notes payable to GST |
227.2 | 227.2 | ||||||
Pension liability |
84.4 | 84.1 | ||||||
Other liabilities |
42.2 | 44.9 | ||||||
Total liabilities |
678.4 | 671.9 | ||||||
Shareholders equity |
||||||||
Common stock |
0.2 | 0.2 | ||||||
Additional paid-in capital |
411.7 | 411.3 | ||||||
Retained earnings |
75.9 | 60.7 | ||||||
Accumulated other comprehensive income |
17.5 | 5.6 | ||||||
Common stock held in treasury, at cost |
(1.4 | ) | (1.4 | ) | ||||
Total shareholders equity |
503.9 | 476.4 | ||||||
Total liabilities and shareholders equity |
$ | 1,182.3 | $ | 1,148.3 | ||||
7
EnPro Industries, Inc.
Segment Information (Unaudited)
Segment Information (Unaudited)
For the Quarters Ended March 31, 2011 and 2010
(Stated in Millions of Dollars)
(Stated in Millions of Dollars)
Sales
2011 | 2010 | |||||||
Sealing Products |
$ | 115.7 | $ | 113.8 | ||||
Engineered Products |
94.3 | 75.1 | ||||||
Engine Products and Services |
60.2 | 39.6 | ||||||
270.2 | 228.5 | |||||||
Less intersegment sales |
(0.6 | ) | (0.3 | ) | ||||
$ | 269.6 | $ | 228.2 | |||||
Segment Profit
2011 | 2010 | |||||||
Sealing Products |
$ | 19.6 | $ | 17.8 | ||||
Engineered Products |
10.1 | 6.4 | ||||||
Engine Products and Services |
11.2 | 10.0 | ||||||
$ | 40.9 | $ | 34.2 | |||||
Segment Margin
2011 | 2010 | |||||||
Sealing Products |
16.9 | % | 15.6 | % | ||||
Engineered Products |
10.7 | % | 8.5 | % | ||||
Engine Products and Services |
18.6 | % | 25.3 | % | ||||
15.2 | % | 15.0 | % | |||||
Reconciliation of Segment Profit to Income from Continuing Operations
2011 | 2010 | |||||||
Segment profit |
$ | 40.9 | $ | 34.2 | ||||
Corporate expenses |
(7.9 | ) | (8.0 | ) | ||||
Asbestos-related expenses |
| (14.5 | ) | |||||
Interest expense, net |
(9.5 | ) | (2.8 | ) | ||||
Other expense, net |
(1.6 | ) | (0.6 | ) | ||||
Income from continuing operations
before income taxes |
21.9 | 8.3 | ||||||
Income tax expense |
(6.7 | ) | (2.7 | ) | ||||
Income from continuing operations |
$ | 15.2 | $ | 5.6 | ||||
Segment profit is total segment revenue reduced by operating expenses and restructuring and
other costs identifiable with the segment. Corporate expenses include general corporate
administrative costs. Expenses not directly attributable to the segments, corporate expenses, net
interest expense, asbestos-related expenses, gains/losses related to the sale of assets,
impairments and income taxes are not included in the computation of segment profit. The accounting
policies of the reportable segments are the same as those for the Company.
8
EnPro Industries, Inc.
Reconciliation of Income Before Asbestos-Related Expenses and Other Selected Items to Net Income
from Continuing Operations (Unaudited)
Reconciliation of Income Before Asbestos-Related Expenses and Other Selected Items to Net Income
from Continuing Operations (Unaudited)
For the Quarters Ended March 31, 2011 and 2010
(Stated in Millions of Dollars, Except Per Share Data)
(Stated in Millions of Dollars, Except Per Share Data)
2011 | 2010 | |||||||||||||||
$ | Per share | $ | Per share | |||||||||||||
Income before asbestos-related expenses
and other selected items |
$ | 19.7 | $ | 0.92 | $ | 15.0 | $ | 0.73 | ||||||||
Adjustments (net of tax): |
||||||||||||||||
Asbestos-related expenses |
| | (9.1 | ) | (0.44 | ) | ||||||||||
Restructuring costs |
| | (0.3 | ) | (0.02 | ) | ||||||||||
Interest expense and royalties with GST |
(4.3 | ) | (0.20 | ) | | | ||||||||||
Other |
(0.2 | ) | (0.01 | ) | | | ||||||||||
Impact |
(4.5 | ) | (0.21 | ) | (9.4 | ) | (0.46 | ) | ||||||||
Net income from continuing operations |
$ | 15.2 | $ | 0.71 | $ | 5.6 | $ | 0.27 | ||||||||
Management of the Company believes that it would be helpful to the readers of the financial
statements to understand the impact of certain selected items on the Companys reported net income
and earnings per share, including items that may recur from time to time. This presentation
enables readers to better compare EnPro Industries, Inc. to other diversified industrial
manufacturing companies that do not incur significant asbestos-related expenses, the sporadic
impact of restructuring activities or other selected items. Management acknowledges that there are
many items that impact a companys reported results and this list is not intended to present all
items that may have impacted these results.
The amounts above, which may be considered non-GAAP financial measures, are shown on an after-tax
basis and have been calculated by applying a 37.5% assumed effective tax rate to the pre-tax amount. The pre-tax amounts for the asbestos-related expenses are separately presented in the
accompanying consolidated statements. The interest expense with GST is included in interest
expense and the restructuring costs and other are included as part of other operating expense. Per
share amounts were calculated by dividing by the weighted-average diluted shares of common stock outstanding during the periods.
9
EnPro Industries, Inc.
Reconciliation of EBITDA to Segment Profit (Unaudited)
Reconciliation of EBITDA to Segment Profit (Unaudited)
For the Quarters Ended March 31, 2011 and 2010
(Stated in Millions of Dollars)
(Stated in Millions of Dollars)
Quarter Ended March 31, 2011 | ||||||||||||||||
Engine | ||||||||||||||||
Sealing | Engineered | Prods. and | Total | |||||||||||||
Products | Products | Services | Segments | |||||||||||||
Earnings before interest, income taxes, depreciation
and amortization (EBITDA) |
$ | 24.3 | $ | 14.9 | $ | 12.2 | $ | 51.4 | ||||||||
Deduct depreciation and amortization expense |
(4.7 | ) | (4.8 | ) | (1.0 | ) | (10.5 | ) | ||||||||
Segment profit |
$ | 19.6 | $ | 10.1 | $ | 11.2 | $ | 40.9 | ||||||||
EBITDA margin |
21.0 | % | 15.8 | % | 20.3 | % | 19.1 | % | ||||||||
Quarter Ended March 31, 2010 | ||||||||||||||||
Engine | ||||||||||||||||
Sealing | Engineered | Prods. and | Total | |||||||||||||
Products | Products | Services | Segments | |||||||||||||
Earnings before interest, income taxes, depreciation
and amortization (EBITDA) |
$ | 23.0 | $ | 11.0 | $ | 11.0 | $ | 45.0 | ||||||||
Deduct depreciation and amortization expense |
(5.2 | ) | (4.6 | ) | (1.0 | ) | (10.8 | ) | ||||||||
Segment profit |
$ | 17.8 | $ | 6.4 | $ | 10.0 | $ | 34.2 | ||||||||
EBITDA margin |
20.2 | % | 14.6 | % | 27.8 | % | 19.7 | % | ||||||||
For a reconciliation of segment profit to income from continuing operations, please refer to
the Segment Information (Unaudited) schedule.
10
EnPro Industries, Inc.
Reconciliation of EBITDAA to Net Income from Continuing
Operations (Unaudited)
For the Quarters Ended March 31, 2011 and 2010
(Stated in Millions of Dollars)
(Stated in Millions of Dollars)
2011 | 2010 | |||||||
Earnings before interest, income taxes, depreciation,
amortization, asbestos-related expenses
and other selected items (EBITDAA) |
$ | 42.6 | $ | 37.0 | ||||
Adjustments: |
||||||||
Interest expense, net |
(9.5 | ) | (2.8 | ) | ||||
Income tax expense |
(6.7 | ) | (2.7 | ) | ||||
Depreciation and amortization expense |
(10.6 | ) | (10.9 | ) | ||||
Asbestos-related expenses |
| (14.5 | ) | |||||
Restructuring costs |
| (0.5 | ) | |||||
Other |
(0.6 | ) | | |||||
Impact |
(27.4 | ) | (31.4 | ) | ||||
Net income from continuing operations |
$ | 15.2 | $ | 5.6 | ||||
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EnPro Industries, Inc.
Selected Pro Forma Results Reflecting Deconsolidation of GST (Unaudited) *
Selected Pro Forma Results Reflecting Deconsolidation of GST (Unaudited) *
(Stated in Millions of Dollars)
Quarter Ended | Quarter Ended | |||||||||||||||
March 31, 2011 | March 31, 2010 | |||||||||||||||
EnPro | EnPro | |||||||||||||||
Pro Forma | GST | Pro Forma | GST | |||||||||||||
Adjusted net sales |
$ | 263.8 | $ | 52.4 | $ | 183.8 | $ | 44.4 | ||||||||
Segment profit/operating profit |
$ | 40.9 | $ | 10.5 | $ | 27.8 | $ | 6.4 | ||||||||
EBITDAA |
$ | 42.6 | $ | 11.6 | $ | 29.2 | $ | 7.8 | ||||||||
Income before asbestos-related expenses
and other selected items |
$ | 19.7 | $ | 6.9 | $ | 11.1 | $ | 3.9 | ||||||||
* | EnPro pro forma amounts reflect the effect of the deconsolidation of GST as if it had occurred on January 1, 2010. Adjusted net sales reflect third party sales only, which differ from the sales reported on the accompanying consolidated statements of operations which include intercompany sales to/from EnPro from/to GST . |
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